Question & AnswerQ&A (Republic Act No. 418)
A tax of five percent or such higher taxes, charges, and percentages as specified in the special charters of the franchise grantees, whichever is higher, unless the charter precludes a higher tax, is imposed on the gross earnings or receipts from the business covered by the franchise.
Franchise holders must submit reports in the form and times required by the Department of Finance regulations.
If no time limit is specified, the provisions of Section 183 of the National Internal Revenue Code shall apply for the due and payment of franchise taxes.
A penalty of twenty-five percent shall be added to the amount of unpaid taxes, and this increase forms part of the tax.
The proprietor, lessee, or operator of theaters, cinematographs, concert halls, circuses, boxing exhibitions, cockpits, cabarets, night-clubs, and race-tracks are subject to amusement taxes.
When the admission fee exceeds 99 centavos, a tax of thirty percent of the amount paid is imposed on each admission.
A tax equivalent to ten percent of the gross receipts is imposed on cockpits, cabarets, and night-clubs.
A tax of twenty percent of the gross receipts is imposed on race-tracks, and this tax is in addition to the privilege tax prescribed in Section 193.
The amusement tax must be paid at the end of each month, and the proprietor, lessee, or operator must file a true and complete return of gross receipts and pay the tax within ten days after the end of each month.
If the tax is not paid within the prescribed time, a twenty-five percent increase is added to the tax. For willful neglect to file a return or filing fraudulent returns, a fifty percent surcharge on the amount of tax or deficiency tax is added.